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Elon Musk agrees to resign as Tesla chairman in settlement with SEC

Tesla CEO
Elon Musk will step down as chairman of the electric automaker and pay a $20
million fine under a settlement reached with the U.S Securities and Exchange
commission. Musk will remain CEO and he will still keep a seat on the board, just
not as chairman.

The
agreement settles what could have turned into a bitter and potentially damaging
fight for Musk, the company, and Tesla shareholders.

Musk will
resign from his role as chairman of the Tesla board within 45 days of the
agreement, which was filed Saturday. He has agreed to not seek reelection or
accept an appointment as chairman for three years. An independent chairman will
be appointed, under the settlement agreement.

Tesla will
pay a separate $20 million penalty, according to the SEC. The SEC said the
charge and fine against Tesla is for failing to require disclosure controls and
procedures relating to Musk’s tweets.

Musk doesn’t
have to admit or deny the SEC’s allegations as part of the agreement.

Tesla has
also agreed to appoint two new independent directors to its board and establish
a new committee of independent directors and put in place additional controls
and procedures to oversee Musk’s communications, according to the SEC. This
likely means that Musk, who frequently turns to Twitter to unveils new
products, features and updates on his multiple companies, will be more
restricted moving forward. At least when it comes to his tweets about Tesla.

“The
resolution is intended to prevent further market disruption and harm to Tesla’s
shareholders,” Steven Peikin, co-director of the SEC’s Enforcement Division
said in a statement.

The
agreement marks the beginning of a new era of corporate governance for Tesla,
which some shareholders have argued is too tightly controlled by Musk and
others closely aligned to him such as his brother Kimbal Musk. Investor and
founding board member Steve Jurvetson is still on leave.

In 2017,
Tesla diversified its board and added James Rupert Murdoch, the CEO of
Twenty-First Century Fox Inc., and Linda Johnson Rice,Chairman and CEO of
Johnson Publishing Company.

Other board
members include: Robyn Denholm, who joined the board in 2014, Brad W. Buss, who
has been on since 2009, Antonio Gracias, and Ira Ehrenpreis, one of
longest-serving board members who joined in 2007.

The SEC
filed a complaint Thursday in federal district court alleged that Musk lied
when he tweeted on August 7 that he had “funding secured” for a private
takeover of the company at $420 per share. Federal securities regulators
reportedly served Tesla with a subpoena just a week after the tweet.
Investigations can take years before any action is taken, if at all. In this
case, charges were filed just six weeks later.

The SEC said
in the complaint that Musk violated anti-fraud provisions of the federal
securities laws. The commission has asked the court to fine Musk and bar the
billionaire entrepreneur from serving as an officer or director of a public
company.

Musk
described fraud charges an “unjustified action” that has left him “deeply
saddened and disappointed.”

Tesla and
the board later issued a joint statement supporting Musk.

The
complaint contains a number of eye-browing raising details, including that he
had talked to the board about an offer to take Tesla private as early as August
2 when he sent to Tesla’s board of directors, chief financial officer and
general counsel an email with the subject, “Offer to Take Tesla Private at $420.”

Good day everyone, the Living Faith Church Worldwide presided by Bishop David O. Oyedepo has released it's recommended books of the month of May as authored by Bishop David Oyedepo. The books are available at major books stores offline and online but you can access them from Owojela's Blog for FREE.

The Inter Party Advisory Council (IPAC) , Cross River Chapter, views with utmost concern, the building tension, arising from preparations for the Ekureku 1 & 2 election rerun for the Abi/Yakurr Federal Constituency, between the Rt. Hon. Barr. John Gaul Lebo of the People's Democratic Party (PDP) and Hon. Dr. Alex Egbona of the All Progressive Congress (APC), slated to hold just a few days away, on Saturday January 25, 2020.

The West African Peoples' Institute needs little introduction to the public. Seating on its elevated perch of West Africa's first and foremost privately run Secondary school founded by Prof Eyo Ita in 1938 during the colonial government. Today she wears a new toga as the cynosure of the Public secondary school education in Calabar, Cross River.

Fast-rising Comedian and MC in Nigeria, Aloke Valentine AKA MC Wealth would be hosting a Comedy show titled Love "N" Fun with MC Wealth. This event happens to fall on the entertainer's birthday which is on the 9th of March 2020.

The Comedian in a brief interview by Owojela's Blog revealed that "the essence of hosting this comedy show was to help fight against the rising depression and suicide in the society". The event is being hosted in Ibiza, One Man village, New Karu, Nassarawa state.

Its a New Year and it seem many are off the blocks to get a good mileage in the public space. I literally used the phrase 'off the blocks' that is unmistakably linked to Athletics because this year will have the Tokyo 2020 Summer Olympics. The reason is a new taste for Tokyo 2020 theme song called Paprika.

Viral online news reports Tuesday 9th July 2019 has it that His Excellency, the Executive Governor of Cross River State has, in a 5th July 2019 letter to the 9th Cross River State House of Assembly, CRSHA requested a loan of five billion Naira (N5, 000, 000, 000. 00) for the payments of pensions and a spurious 'other unforseen obligations of government'.

Why is a Japanese destination ad or tech shows always primetime on CNN international for the past two years? Why did Coca Cola launch their first alcoholic drink in Japan last year? Why did popular reality TV star Kim Kardashian dared to copyright the name ‘Kimono” a name that describes the old Japanese traditional attire this year? Why did billionaire businessman Mayasoshi Son owner of Softbank this year, launched in Japan the cheapest all year round internet service 5G LTE in the world?